Hong Kong Income Tax Calculator 2026
Calculate your Hong Kong taxes: Progressive rates or 15% Standard Rate + MPF Contributions
~$0
0 HKD
Effective rate: 0%
0 HKD
5% (capped at 1,500 HKD/mo)
0 HKD
Monthly: 0 HKD
Income Distribution
Effective total rate: 0%
The calculator automatically uses whichever rate is more favorable.
Complete Guide to Hong Kong Taxation
Hong Kong is recognized as one of the most attractive tax havens in the world for individuals and businesses. With very low tax rates (maximum 17% or 15% flat) and no capital gains, dividend, interest, or inheritance taxes, the city attracts many expats and entrepreneurs.
An attractive tax haven
Hong Kong applies a "Salaries Tax" system with some of the lowest rates in the world and numerous exemptions. No VAT, no capital gains tax.
Salaries Tax: Two Calculation Methods
Hong Kong offers a choice between two methods - the system automatically calculates the most advantageous for you:
Progressive Method
2% - 17%
Tax calculated by brackets, advantageous for middle incomes
Standard Rate (Flat Rate)
15%
Flat rate on net income, advantageous for high earners
Progressive Tax Brackets 2026
| Net Income Bracket | Rate | Cumulative Tax |
|---|---|---|
| HKD 0 - 50,000 | 2% | HKD 1,000 |
| HKD 50,001 - 100,000 | 6% | HKD 4,000 |
| HKD 100,001 - 150,000 | 10% | HKD 9,000 |
| HKD 150,001 - 200,000 | 14% | HKD 16,000 |
| HKD 200,000+ | 17% | Variable |
What Hong Kong Does NOT Tax
0%
Capital Gains
Stocks, real estate, crypto
0%
Dividends
No withholding tax
0%
Interest
Bank accounts
0%
Inheritance
No estate duty
0%
VAT/GST
No consumption tax
0%
Foreign Income
Territorial system
MPF (Mandatory Provident Fund) - Mandatory Retirement
The MPF is the only mandatory deduction besides income tax:
- Rate: 5% employee + 5% employer = 10% total
- Monthly cap: HKD 1,500/month or HKD 18,000/year maximum
- Minimum income exempt: HKD 7,100/month
- Nature: Capitalized retirement savings (like a US 401k)
Numerous Deductions and Allowances
- Basic Allowance: HKD 132,000/year (~EUR 15,000) for each taxpayer
- Married Person's Allowance: HKD 264,000/year for married couples (joint filing)
- Child Allowance: HKD 130,000/year per child (HKD 260,000 in year of birth)
- Dependent Parent Allowance: HKD 50,000/year per dependent parent (HKD 100,000 if living with you)
- Disabled Dependant Allowance: HKD 75,000/year
- MPF Contributions: Deductible up to HKD 18,000/year
- Self-education Expenses: Up to HKD 100,000/year for professional training
- Home Loan Interest: Up to HKD 100,000/year for 20 years
Example: HKD 500,000 Salary
International Comparison
| Criteria | UK | Hong Kong |
|---|---|---|
| HKD 500,000 gross salary | ~HKD 340,000 net | ~HKD 437,000 net |
| Top marginal rate | 45% | 17% (or 15% flat) |
| Social contributions | ~12% (NI) | 5% MPF (capped) |
| VAT | 20% | 0% |
| Capital gains | 10-20% | 0% |
| Dividends | 8.75-39.35% | 0% |
| Inheritance | 40% | 0% |
Pros and Cons of Hong Kong
Advantages
- + Very low taxes (max 17%)
- + No VAT
- + 0% on capital gains & dividends
- + Territorial system
- + Efficient administration
- + Many deductions available
Disadvantages
- - Very high cost of living
- - Among most expensive real estate
- - Limited social protection
- - Expensive private healthcare
- - Uncertain political situation
Hong Kong offers a simple tax system with some of the lowest rates in Asia. Compare with competing financial centres in the region.